European solar energy provider Scatec Solar and the Norwegian Investment Fund for Developing Countries have signed an agreement to guarantee solar-generated power to Mozambique for 25 years, Macauhub reports.

The website says Scatec Solar has committed to installing a US$84-million solar-power plant in Mocuba in Zambézia province that will go online by the end of next year. The plant’s 40-megawatt capacity is expected to supply electricity to the equivalent of about 175,000 homes each year, the report says.

Scatec Solar holds a 52.5-percent stake in the project, the Norwegian fund some 22.5 percent and Electricidade de Moçambique, the state-owned electricity firm, a one-quarter share.